CBK’s loans pricing dilemma and Kenya’s lending illusion

The Central Bank of Kenya in Nairobi.

The Central Bank of Kenya in Nairobi.

Photo credit: File | Nation Media Group

As a lobby for banks, the Kenya Bankers Association (KBA) has in recent weeks cudgeled the Central Bank of Kenya (CBK) on its determination of interest rates as if it was a lethal adversary. It is not.

As a macroeconomist, and monetary policy analyst, I have often reflected on the similarity of the interest rate question to tectonics deep in the earth’s crust.

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Note: The results are not exact but very close to the actual.